♪ [ indistinct shouting ] [ male announcer ] time and sales data. split-second stats. [ indistinct shouting ] ♪ it's so close to the options floor... [ indistinct shouting, bell dinging ] ...you'll bust your brain box. ♪ all on thinkorswim from td ameritrade. ♪ a bit of news to bring you up to date on, three members to sotheby's board of director,

sotheby's is out way response, dus appointed third point chosing this path. sotheby's had a solid 2013 and 2014 off to a strong start. that the actions are particularly unfortunate given the efforts that sotheby's made to reach an agreement with mr. loeb including an offer to put him on the board with roles on three board committees. that sotheby's striking back at this latest plan from dan loeb. back to our debate now. we've tallied results. josh, you won the debate on best buy. [ applause ] a final trade first? >> pepsi. >> anadarko. >> i like carter, ci. >> josh? >> dfa going higher. that does it for us. "power lunch" begins right now. all right. welcome to "power lunch," everybody. i'm sue herera here and tyler is on my old stomping grounds out in southern california. we'll get to ty in a second. first, a big day for the fed

chief janet yellen. before the senate banking committee since taking over from bernanrernankn bernanke. what are we hearing? >> close to the script on the path ahead for monetary policy. act one, sue, is going to be the idea the fed is going to be tapering. act two, interest rates kept low a very long time to come. yellen made a bit more of the weather than in the past. the idea is the weather is something hurting the economy now, sue. however, she made, maybe, a bit more of it than in the past. finally, it would take a significant change in the outlook to alter the fed's plans to reduce or taper the amount of monthly bond purchases bringing it down to zero by year end. as for raising rates, suggesting, a long way off and the fed is looking into other data in addition to the unemployment rate. >> the employment rate is not sufficient statistic to measure the health of the labor market.

additional 5% an unusually high fraction of our labor force is working part time, for economic reasons, which means they're unable to get full time work, but want it. as we go to a fuller consideration of how is the labor market performing, we need to take all of those things into account. >> fed has a problem, because its poebls statement says 6.5% is unemployment rate. threshold considering rate hikes, 6.6% now. yet the fed considers the labor market to be weak in the absence of inflation, believes lower rates are needed. on another issue, yellen asked about bitcoin saying the banks it regulates in general, not involved with the virtual currency but asked congress to take a look. >> the fed doesn't have authority with respect to bitcoin but it would be appropriate, i think, for congress to ask questions about what the right legal structure

would be. >> take away on monetary policy is still on. the new fed chair has every intention of keeping rates low. sue? stay with us. we're going to rick san telltel. how did the senate bid do? >> this was an a. i almost could have given it ap a-plus but didn't. a solid a. tell you, the met tricrix are g. $28 but, seven-year, like yesterday, the one side the issued market. bid to cover, 2.72, best since november of '12. it really took out the $2.56, a ten auction average. where it gets good. 41.1 on incorrect. exactly the ten auction average. directs were 24.6. we brought back the 7 years in march of '09. this is the highest direct since that time.

dealers only took 34.3% of the auction. it's in investors' hands. solid takedown and it represents some nervousness regarding the economy or maybe it's a weathered notion, or maybe they watched janet yellen today. >> i think it could be all of those things, and, steve, also, the tensions in ukraine. the tensions in venezuela, the tensions globally around the world. >> i stopped looking at numbers. i follow rick's grades now. >> the grades? yeah. >> i can't remember three as in a row and i think -- >> you know what? you're right, steve. >> i think that's bad for the economy and it raises a question out there, this split. stocks seem cool, sanguine, chip chilled with what's going on but mot the bond market. he's not going to be happy about the economy, kevin o'leary, until the ten year is at 3%. i don't like kevin, i think he's mean on television, but he's a

smart guy. there's something to that. unless the bond market, i won't feel comfort with it. >> that echoes, the comments by jim cramer this morning saying i can't figure out the bond market and wasn't afraid to say that. basically saying the ten year should be at or below, just below the 3% level. it's telling us something that stocks are not, to steve's point. >> well, tell you what, i totally disagree with jim cramer on that one but i think a bigger notion now is, if the bond market were at 3%, i think would be because of strong data. i think we've gone through kind of the taper move in may, june and july. i think right now it really is nervousness about equities in general. and i wish we had the shark tank crew in that chamber today asking some better questions. >> well, that would be interesting, to say the least. >> i would support that. >> thank you so much. steve, thank you. ricky, see new a little bit. meantime, the big news

today. several big name activists embroiled in the news. we broke it here on cnbc with scott wapner. dominic chu is following the action. a lot yorn plate. >> we'll try to get through it all. early think morning, third point nominating three people to the board of auction house sotheby's. third point founder and ceo dan loeb, synonymous name with them, restructuring wilson and luxury jeweler in paris. third point the biggest slayerholder with a 9% stake and loeb and wilson directors at yahoo! a are toer third point activist target. developing now, sotheby's responded to loeb saying they are disappointed that third point has taken this course of action. at the same time, activists investor nelson peltz turning up the heat on pepsi coe telling cnbc he's spoken with several pepsi shareholders and positive

reaction to split up the business. his firm will take the case to every major pepsico shareholder in the coming weeks and, of course, we can't forget about carl icahn, right? he still wants ebay to split off its paypal payment unit, making his case to the company and shareholders. in the latest, ebay chairman is sending another letter in this chain of letters saying that carl icahn's statements are false and misleading. sotheby's, pepsico, ebay, will all continue to be a focus for investors. now, we send it off to tyler, off in southern california. back over to you, tyler. >> dominic, thank you. here at l.a. live outside the nokia theater where some 3,000 ceos worldwide representing 100 countries have gathered for the young presidents' organization's annual meeting here. it's really a conclave of people who are on the front lines of the economy. this group represents some 15 million employees globally.

some 6 trillion in annual revenues. they're very interested in what janet yellen has been talking about. in fact, in a recent survey of their optimism, they cited the fact that the u.s. central banks and central banks in europe and elsewhere around the globe are being relatively easy and keeping interest rates low. that's why they're optimism now stands at a two-year high. we're talking to be a lot of them. we'll have one of them in just about a half hour's time, or less than that, magic johnson. of magic johnson enterprises. a fascinating business story. i got a chance to sit down with him yesterday. he is fun and larger than life but has an amazing business story to tell. we'll share it with you in a little while. meantime, out to phil lebeau in chicago. check in with him on a couple of stories most notably and primarily tesla's plan, phil, to take over the auto business. >> well, they'd love that, but they're a long ways from there. they're planning to build a huge gig georgia factory cranking ot

battery packs and cells to power 500,000 vehicles. the race is on when it comes to where that gig georgia factory -- where it will -- get to that. willwhere it will be located. four states are finalized. arizona, nevada, new mexico and texas. we'll see soon which gets the location. tesla raising 1.6 billion through convertible notes. that will go towards funding the gig georgia factory. switch from tesla to general motors, which is now under an investigation from the national highway traffic safety administration. looking into how gm handled the recall of 1.3 million ignition keys. remember, those ignition key, faulty key, all the way back to 2003, linked with 13 deaths. gm could be hit with a major fine. more lawsuits. today gm issued a statement saying we deeply regret the events that led to the recall and this investigation as our detailed chronology indicates we intend to fully cooperate with nhtsa and welcome the opportunity to have the agency have a full understanding of the

facts. talk about snag will get a lot of attention. six-year auto loans. get used to the six-year auto loan. 33% of the loans this month according to jd power, for bizzer who have taken out six-year loans on pace for a record high for any one month. car buyers or doing to seek lower monthly payments. with vehicles costing more, spread out the payments. brings it down every month a little bit. >> that is the appeal of those longer term loans. let me turn you, terrupting. american aline ending bereavement fares. why is this a dumb p.r. move? >> people look at this, no compassion for people who need to fly somewhere for a funeral at the last minute? keep in mind, however, doug parker, the ceo of american did not have the a bereavement policy when running us airways.

other airlines don't have them as well. depends which airline you go with. it does not look good in terms of p.r. right now. at the end of the day, ever say i never flew us airways because they don't have bereavement fares? looks bad not. long term, not about impact. sunny in california now. they hope it stays this way for the weekend's oscars, but rain ask forecast here. not much, but, boy, do they need. in toronto, not rain, a snow squall caused a 100-car pileup in toronto this morning. they're still trying to clean it up out there. 100 cars colliding in toronto today. when we come back, i'm going to introduce you, not that he needs introduction, to one of the most interesting business people in america, magic johnson. we'll be back here outside the nokia theater at the young presidents organization's annual

meeting after this short break. >> announcer: you know magic johnson was a superstar on the court. wait until you see how powerful a businessman he's become. tyler and magic. one-on-one, from a controversial bill in arizona to his mentor in business. nothing is off the table. next on "power lunch." ing an ol) to a fidelity ira. it gives you a wide range of investment options... and the free help you need to make sure your investments fit your goals -- and what you're really investing for. tap into the full power of your fidelity green line. call today and we'll make it easy to move that old 401(k) to a fidelity rollover ira. like carpools... polly wants to know if we can pick her up. yeah, we can make room. yeah. [ male announcer ] ...office space. yes, we're loving this communal seating. oh, it's great. yeah. [ male announcer ] the best thing to share? a data plan. ♪ new at&t mobile share value plans for business. our best value plans ever.

for example, you can get 10 gigs of data to share. and 5 lines would be $175 a month. plus you can add a line anytime for $15 a month. sharing's never been better for business. ♪

welcome back to "power lunch." coca-cola's investment in green mountain coffee roasters is official.

we know the actual numbers beyond the broader $1.25 billion investment for the 10% stake. green mountain issued 16.7 million shares of stocks purchase price $74.98 a share. a 7% discount to the closing price on the deal the day it was announced. green mountain shares currently trading around $113, $114 today. the paper gain for coca-cola, quick and dirty mathwise, $115 per share. on 16.7 million shares. 651 million dollar paper profits. change there, and green mountain said they would do a meaningful share purchase program to help minimize the dilutive effects of are this new share issuance. as for coca-cola, you see the stock trading there. sue, the officialness of this deal now today official. back to you. >> all right. thank, dom. did you know we're turning 25? as we celebrate cnbc's 25th anniversary, looking ahead to what the next 25 years will

bring. so when politics, how will the digital revolution shape how campaigns and elections are run and spun? good to have you in studio. you're looking at what the next 25 look like, right? >> exactly. look at this tv screen behind me. another set of those 30-second attack ads. what? had enough? don't want to see anymore? 25 years from now, about entire new generation of voters will feel that way, accelerating changes in campaigns that have already begun. >> their entire experience of content, consumption, what they want to believe in, how they want to decide what to vote has everything to do with two processes, very, very unlike plopping down in front of the boob tube on the couch. first, search. going out and figuring out what information you want, consuming it. second is social. that's the opportunity to look at something your friend shared with you rather than what c nbc

or abc or cnn wants to put in front of you, or for that matter, a candidate paying for an advertisement. >> reporter: the internet is where we'll take political polls, which are still struggling to catch people on cell phones. what about other political rituals? >> people expect the convenience of being able to register to vote on devices like this. by 2039, we may be voting on them, too. >> the clerk will call the roll. >> reporter: even those on the cutting edge can't see us doing away with gathering elected officials in places like this, to debate and make laws. >> there's going to continue to be value and also a perception of value in people coming together, putting their phones down and talking through an iss issue. i think my personal view is that part of the reason there has been such disfunction in washington is that legislators have to spend so much time raising money they're not spending time having a drink together, getting to know each

other and finding common ground. >> reporter: given how the american public loathes both political parties, the big question is, is there a third party that's going to crop up? >> absolutely. >> the track record is not positive in that regard. ross perot tried it. didn't work out. >> thanks. we'll see more of you on other shows on cnbc. out to sunny l.a. with a magic with ty. >> it's sunny now, sue. back live in l.a. add l.a. live, the nokia theater where thousands of young ceos think of this is a davos for the under 50 set. really shts t really, the future of business is here at the young presidents organization. president bill clinton about to address the crowd, moments ago. last night i got a special chance to speak with magic johnson about his incredible road to business success. i started with a question about about honor from cnbc. he was surprised. >> you know, magic, i don't know whether you knew this but cnbc is putting together the 25 most

influential business people of the past 25 years for our 25th anniversa anniversary. a list of 200. you were on it. >> oh, wow. >> we just cut to the final 100. you were on it. >> man. >> david stern got cut. what do you think? >> wow. >> is that a good call? >> well -- i love what david did for the nba. no question. he actually turned the whole league around, and i wouldn't say that it was a good cut. i love david. i wouldn't have had the platform that i did without him. i think he understood larry and i had just came in to the league to shine light on the celtics and lakers, when larry came in, took us to another level. when i was on my rookie -- my rookie season, when i was in the finals against the 76ers, it was tape delay. he brought the finals to prime time.

the money these guys make, they owe a lot of credit to david stern for that. >> an aunt tra prat nuer and globalized the sport where the way it hadn't been from the dream team on. talk about why you're on that list. largely because of what you've done in developing businesses. most especially in inner city areas. why was that an imperative to you, and let me ask a kind of -- i don't want this to come out the wrong way. are there opportunities in the inner cities that aren't there in other areas, because if you do something good and big, there's a little less competition there? >> you said it right. i think for me it was focusing on the urban consumer, the urban market. there was a high demand there, and when you think abouts lan l disposable income, but they demanded quality services coming in to their communities. so i was able to bring those services after showing big boxes

and big retailers they can drive our ride, and that they could be successful in urban america, and i have to say that at that time peter greuel was running sony. so the magic johnson theaters, but howard schultz really changed it for me, and with starbucks and when we made that deal -- >> brought a lot of starbucks into areas where there hadn't been starbucks. >> yes. and minorities love starbucks, too, like everybody else. willing to pay, just like everybody else. >> so who taught you the most about business in your career? who did you learn the most from? howard schultz? dr. bus or -- >> i would have to say dr. bus first. earl gray is a black enterprise, but the one guy who really taught me branding and really understanding bottom line and bill to suit and all of that type of thing, howard. customer service and making your business about the customer. he was able to really teach me a

lot, but dr. bus was the one who started me. >> let me ask you two questions that are topical this week. one, jason collins. broke a barrier this week. >> right, and -- >> and just recently the governor of arizona vetoed a law that would have, in many people's eyes, have been a setback to the gay and transgender community. how do you feel about those two events this week? as a businessman? >> yes. jason collins, it was great. great for the brooklyn nets. great for jason, because he just wants to play basketball. if a guy can help you win games, and he is a big body who can rebound, set great screens. he's smart. going to stanford, of course. so i think that was a great move for the nba and for jason, and for gays. then when you think about what the governor did, that was the right thing to do, veto that bill. here you've got all of these incredible people who just want

to dine like everybody else, want to go to hotels like everybody else. we should treat everybody equally, no matter race, religion -- and so they would have been, i think, the state would the have been in trouble, because the super bowl was coming, and i'm sure other events was coming and people would have pulled out if that would have happened in arizona. i just don't like that either. >> magic johnson, thank you very much. great to be with you. >> you, too. >> see you on the final 25? >> i hope so. we'll see if he's on the final 25. final concluding thoughts about magic, here to speak to the wpo, although not a member. his business interests go beyond those magic johnson theaters that you may be familiar with. he had lots of starbucks, which he ultimately sold back to howard and the starbucks company. his real estate interests, food service interests move far and wide. he has hotels in austin, hoboken

and elsewhere and real estate holdings. magic the man, he is a huge, huge man, but what stands out about him is as big as he is, and he is big, he has an even bigger personality. and finally, there are two guys that i've met in my life who wore the most beautiful suits i've ever seen. one was magic. one was his mentor, howard. dominic chu, back to you. >> great. i got watch my suits now, of course. check out catamaran shares, tyler. shares sinking after benefit management says the profit outlook falls below wall street expectations trading ten times it's normal volume nap stock is down big, sue, you can see there. back to you. >> always natally dressed. thank you. and prime and punishment, a multimillion dar fraud and a brazen murder plan. on the cates case. >> a con man locked in this cell

and filled with rage hatches a wild scheme to kill. only on cnbc. coming up next on "power lunch." ok, here's the way the system works. let's say you pay your guy around 2 percent to manage your money. that's not much, you think except it's 2 percent every year. does that make a difference? search "cost of financial advisors" ouch! over time it really adds up. then go to e*trade and find out how much our advice costs. spoiler alert. it's low. really? yes, really. e*trade offers investment advice and guidance from dedicated professional financial consultants. it's guidance on your terms not ours that's how our system works. e*trade. less for us, more for you.

humans -- even when we cross our "t's" and dot our "i's," we still run into problems. that's why liberty mutual insurance offers accident forgiveness with our auto policies. if you qualify, your rates won't go up due to your first accident. because making mistakes is only human, and so are we. we also offer new car replacement, so if you total your new car, we give you the money for a new one. call liberty mutual insurance at... and ask us all about our auto features, like guaranteed repairs, where if you get into an accident and use one of our certified repair shops, your repairs are guaranteed for life. so call...

to talk with an insurance expert about everything that comes standard with our base auto policy. and if you switch, you could save up to $423. liberty mutual insurance. responsibility. what's your policy? metals markets closing now. look where we stand. a be a $4 gain in the gold market at the close. silver market a fractional move to the upside. continues pressure in the copper market and in the platinum market in today's trading session. down about $1.40 in platinum. a con man already behind bars seeks revenge on the people

who put him there. andrea day has more on the story. andrea? >> reporter: joseph romano spent hours locked up in his cell burning with rage. it's here where he hatched a plan to kill. the details, straight out of a hollywood movie. a convicted swindler living large behind bars. >> i pay someone do my laundry. i get three different com serious. >> reporter: but joseph is hellbent on revenge. >> needs to be stopped. >> reporter: the grisly scheme to kill and deckacapitate a prosecutors. >> wants both their heads, formaldehyde. wants it done. >> reporter: the story begins in 2001 when joseph romano orchestrates a collectible coin scheme. he sets up a boiler room operation in new york to hawk the goods. u.s. attorney -- >> he would contact primarily elderly people and entice them to buy coins at greatly

exaggerated rates. >> reporter: but in 2008, the scheme comes crashing down. romano is charged with conspiracy to commit mail and wire fraud. he's ultimately released on bail, but even a looming sentence doesn't stop him. he sets up another coin business. this time with a close friend. a guy named david americaovik. investigators get wind and he's thrown back in jail for violating parole. he's later convicted, and finally sentenced to 15 years behind bars. but romano is desperate to get even. with the people who put him in jail, and who forced him to turn osier $7 million from his coin fraud. his targets, a federal judge, about assistant district attorney and a slew of others. here in lockup he looks to inmate pals for help finding a hitman. a jailhouse snitch tips off investigators, and agents begin watching and listening in to

romano's every move. that's romano in the white t-shirt inside a holding cell and talking with a snitch about his plan to kill judge bianco and the prosecutor. >> [ inaudible ]. >> reporter: the snip satch say has a man on the outside that it wake a hit. romano makes the call but has no idea the man he's about to hire is really an under cover agent posing as a professional hitman named bobby russo. >> at this first meeting it was pretty clear romano wanted to hurt somebody but didn't bring up the judge and the prosecutor just yet. instead, this third person. almost as a way of testing the undercover agent or the person that he thought was going to be his hitman. >> reporter: he tells russo to beat up a long island mechanic he used to do business with.

>> i have one [ inaudible ] -- >> okay. >> reporter: the fed set up an elaborate scheme. even staging this photo of the mechanic lying on the ground to show ra mann poach and romano takes the bait. >> i'm in my cell. i'm [ bleep ] dancing around, singing and stuff and just laughing my [ bleep ] off thinking about that. >> that's when the discussion turned to actually killing and torturing the prosecutor and the federal judge that were involved ins underlying case. >> reporter: he tells him to green light the hit and prosecutor. he meets with russo. >> do a little bonus in, when he gets out. you hold ton it until he gets out. [ laughter ] >> he's a sick. >> okay. >> reporter: they meet at this parking lot and hands over the first payment. >> $9,900 there.

want to count it. >> reporter: investigators have all the evidence they need to charge romano with two counts of conspiring to murder a government employee. they arrest him in his cell and romano questions to this sadistic plot. inside merkovik's home they found payment. he pleads guilty to one count to murder a government employee and is sentenced to 24 years in prison. romano could now spend the rest of his life behind bars. according to investigators, even after he confessed and was riding in the car with the fbi, romano kept ranting and raving. an agent said, why don't you just let it go? romano said, "i'll never let it go." back to you. >> andrea, thank you very much. dramatic stuff. let's go to the ten-year note and look at the yield.

we had our third a auction in a row according to rick santelli and the yield on the ten-year hasn't budged. you're up to date after strong demand on the seven year. meantime, the bond market followout from detroit's bankruptcy and puerto rico the financial crisis is catching the eye of the sec. bob pisani is with the sec's dan gallagher in a first on cnbc interview down at the nyse. bob? >> and nyse commissioners rarely appear on our air. dan does. thanks for joining us. before i ask about the bond market. news here. a british man charged with breaking into the computer servers of the federal reserve. the federal reserve. is our financial system safe from hacking like this? >> look, hacking is a constant threat, bob, and something we have to be completely vigilant about at the federal government. the sec, we're taking actions constantly to address these issues. i wish we could say it's 100%

safe, it takes that constant effort. >> some kind of securities fraud involved -- >> in connection with securities, something that happened at a registrar, obviously, jurisdiction. not for this one you're talking about. >> issues with puerto rican and detroit debt. you're concerned be a the corporate municipal debt market. why are you worried and why is the sec? >> plenary authority over these markets. us or nobody for the most part and they're huge. $11 million on the corporate side. total retail participants. >> don't they have enough information? >> not nf information. investors education teeshls. there's a new link, they put up today to read about fixed income but not enough price transparency. bob, all the trading for corporate bonds and muni bonds used to happen here before world war ii. >> more disploeclosures on fees?

>> absolutely. it's a focus and something i've called on for years and my colleagues, are interested. >> we think the way the market structure is the markets are way to complicated. 50 different ways, 50 different trading venues out there. is the market structure too complicated, too many trading venues? >> i don't know if there's too many but the markets are too complicated. too much confusion about. investors don't understand the structure. for the sec, the importance, seen as looking at it, engaging in holistic review and address our rulemaking. >> you invented this? >> we did. >> the market structure exists because the sec invent eed currt system. >> it's something congress is looking at and has to be on the table at the holistic review. >> you think there will be changes? >> i do. >> hold you to that. a lot of people would like to see them. our viewers as well. dan gallagher, sec commissioner. by the way, @dangallagher, the

only commissioner with a twitter handle. >> come visit me. >> tyler, back to you. bob, thank you very much. back at l.a. live outside the nokia theater where i'm literally surrounded by some of the young president organization members. getting ready to go in, and hear president clinton in just a few minutes. meanwhile, the housing market. the powerhouse, every week we take you to one of the top 20 housing markets in the country and show you what your money will buy you there, today. port lland, oregon today. when we come back, the great manufacturing debate. we'll talk about it. are those jobs gone forever or are they beginning to trickle back? we'll flare two of the members of the ypo, after this. >> announcer: the business of america is business. when we come back, two manufacturing ceos who don't see eye to eye on our role in the global supply chain. we are live today in los angeles with 3,000 global business leaders. more "power lunch" in two minutes.

[ male announcer ] once, there was a man who found a magic seashell. it told him what was happening on the trading floor in real time. ♪ the shell brought him great fame. ♪ but then, one day, he noticed that everybody could have a magic seashell. [ indistinct talking ] [ male announcer ] right there in their trading platform. ♪ [ indistinct talking continues ] [ male announcer ] so the magic shell went back to being a...shell. get live squawks right in your trading platform with think or swim from td ameritrade.

get live squawks right in your trading platform ...return on investment wall isn't a street... isn't the only return i'm looking forward to... for some, every dollar is earned with sweat, sacrifice, courage. which is why usaa is honored to help our members with everything from investing for retirement to saving for college. our commitment to current and former military members and their families is without equal.

welcome back top live at the ypo global edge. the largest gathering for the young presidents organization which thousands of ceo, literally 3,000 on the front lines of the economy congregated. here discussing the future of our planet and the global economy. the growth of manufacturing in the u.s. is a hot topic here. is it a myth? are those jobs coming back? phillip cusid. close enough? >> that's right. >> of the company bamco and daniel levins ceo of cane millwork. good to you have both here. you not only don't believe, phil, that manufacturing jobs are coming back to the united states in a big way, but that to the extent we have caulked abta their return, it is, a, a myth and, b a marketing ploy on the part of some of the companies doing it? >> right. definitely a myth 100%. patently false. the number, jobs aren't coming

back. i think an estimate around 20,000 jobs in the last few years compared to the 160 million jobs in the u.s. have actually maybe trickled in. a small anecdotal thing. the reality, those jobs are gone forever. the old jobs. new jobs are coming around because of the global economy and 2 billion people out there. >> on net losing, still bleeding manufacturing jobs. >> yes. >> dan, how do you react to that? >> yeah. >> and to phillip's allegation that in some cases companies are using the fact that they're adding domestic manufacturing jobs as a marketing tool to make customers feel good about them? >> absolutely. there's no doubt we've lost a tremendous number of manufacturing jobs. those the old manufacturings. what we did in this country, failed to recognize the importance of manufacturing to america. that's not political. it's common sense. we need to identify how to bring them back but how to create new jobs in the new era of

manufacturing. >> what kind of jobs are you talking about? new manufacturing jobs as opposed to old tool and dye stuff? >> right. look at what's happening. innovation is key. tuesday the president announced a major hub in chicago for manufacturing for innovation, for sharing of ideas and designs. for bettering manufacturing process. i'm not one to be an apologist for the president, but on this point i very much agree. this is not the government writing a check they can't cash. nearly 70% of that investment is private sector. $250 million going into innovation, into educating new people, going into taking us into that new era, which is service and ingenuity is the model. >> phillip, if you were king of the world, just say, and you were charged with the idea of trying to bring back manufacturing jobs to the united states as a path for people who may not have the highest education, a path to the middle class from people in lower income strata, what would you do, suggest? >> it may about but above my pay

grade, but i would say, if you look from the perspective of generating manufacturing jobs, you're looking at 9 wrong thing. our politicians steer us towards manufacturing jobs. durable goods, manufacturing, makes us 3% of employee es in the united states. why feck ocus on the 3% and ign the other 97% of be jo jobs. we have the wrong conversation. focusing on the 3% when 97% of the jobs is where the growth has been and will be for the next ten years. >> what are the manufacturing jobs we can invest in profitably in this country, and help employment and help people go to work? >> i think, you know, manufacturing, you've got to flip it on its head and say manufacturing isn't the old way, we'll give you what we have when we have it. manufacturing has to be in the future a service business. if you come to rochelle, illinois, you come to cane millwork, a manufacturing plan designed to deliver exactly what

the customer wants. highly skilled, using innovation to make ourselves efficient and delivering to the customer what they want when they want it. you can't get from from a slow boat in china 0 tope a restaurant. every day losing money. >> the companies i've spoken to, yes, we've brought back, kin ex toy, brought them back. now 100. now 15 in the plant because so much is robotics, right? >> that's the thing, tesla, for example. they've got a plant right here in los angeles. the thing is, it's mostly robotics. when jobs come back, it's machine-based, not lakbor jobs. they stay overseas. >> we have to leave it there. sue, back to you. >> great conversation. thank you, ty. we just hit a new record high on the s&p. we'll talk about that when e were um come back. plus u.s. new home sales surging to a 5.5 year high in

january led by the northeast. how are things looking in the beautiful northwest? today's power house is in portland, oregon. how far your money can take you over there. plus, a few things you might not know about oregon. like new jersey, the only other state without self-serve gasoline stations, home to nike and has no sales tax. back with more in a minute. (announcer) scottrade knows our clients trade and invest their own way. with scottrade's smart text, i can quickly understand my charts, and spend more time trading. their quick trade bar lets my account follow me online so i can react in real-time. plus, my local scottrade office is there to help. because they know i don't trade like everybody. i trade like me. i'm with scottrade. (announcer) ranked highest in investor satisfaction with self-directed services by j.d. power and associates.

(voseeker of the sublime.ro. you can separate runway ridiculousness... from fashion that flies off the shelves. and you...rent from national. because only national lets you choose any car in the aisle... and go. and only national is ranked highest in car rental customer satisfaction by j.d. power. (natalie) ooooh, i like your style. (vo) so do we, business pro. so do we. go national. go like a pro. [ car alarm chirps ] ♪ [ male announcer ] we don't just certify our pre-owned vehicles. we inspect, analyze, and recondition each one, until it's nothing short of a genuine certified pre-owned mercedes-benz for the next new owner. [ car alarm chirps ] hurry in to the mercedes-benz certified pre-owned sales event. visit today for exceptional offers.

♪ we asked you in or yahoo! finance.com question of the day, american airlines dropping bereavement fares. should other airlines follow its lead? the percentage. yes. everyone should play by the same rules. 12% of you, no, airlines should have compassion. 52% of you, and 36% of you say, all last-minute fares are unfairly too high to begin with. we also got a tweet fro from @tliveman saying, worst company in america award. american airlines for dropping

bereavement fares. thanks for tweeting us. continue to do so. we'd love to hear from you. let's see what's coming up on "street signs." hi, mandy. >> hey there, sue. three big headlines. apple, tesla and dom on the show with a list of buy dos and don'ts. what's that? a list of companies to watch and those not to watch and the tire indicat indicator. what's that? tire prices el itting us more than we know what's going on. it's the tire indicator. all those things and lots more, guys. join us top of the hour in about ten minutes' time. >> see you as two, mandy. power house time. in beautiful portland, oregon. brian is with us. welcome. nice to have you here. >> hi, sue. thanks for having me. >> start with market stats. year to date in portland, average sales price is $355,000.

>> yes. >> median sales price, just under $300,000. look at the first listing. 5079 sunset drive. a three story, two bedroom, two bath home lifted for $365,000. 1800 square feet. $5,000 in taxes. looks craftman-like. >> it is's a lot of dual income buyers love to move into the home and not responsible for the single family's maintenance and upkeep. close to parks and transportation. work from home and have a little space. >> considered entry level in that area? about? >> that is an entry level house, yeah. >> great. second listing. 4031 southwest alice street. four bedrooms, three bathrooms, listed for $365,000 looks like a newer craftsman?

>> it is. this house, i live. built here for generations. quintessential. new and a lot of green features, a lot of people in portland are looking for. such as energy-producing solar panels, tankless water heaters and energy efficient fixtures. >> beautiful. love it. >> great house. >> sure it is. to our power house of the week, which i fell in love with. 14606 northwest 52nd court. actually located in vancouver, washington, and we'll tell you why that's important. the sales price is $1.4 million. it has four bedrooms, seven bathrooms, a pool house. 5,300 square feet and under $12,000 in taxes. i'll getting on a plane. i love this house. tell me about it. >> i'll write it up for you, sue. >> you got it. >> a really great property. what a lot of people don't realize, vancouver, washington, and portland are very close together. we have a lot of season buyers entering retirement account stage, and since portland's income tax is about 12% people

move to washington with no state taxes. you get a lot for your money in vancouver. looking at this house, a great retreat t. is a great retreat. i love that outdoor fireplace. and, you know, just a beautiful part of the world. let us know if the powerhouse helps you sell any of those. they are great. thanks for joining us. one hot solar stock soaring today, we name some names, next. [ male announcer ] these days, a small business can save by sharing. like carpools... polly wants to know if we can pick her up. yeah, we can make room. yeah. [ male announcer ] ...office space. yes, we're loving this communal seating. oh, it's great. yeah. [ male announcer ] the best thing to share?

a data plan. ♪ new at&t mobile share value plans for business. our best value plans ever. for example, you can get 10 gigs of data to share. and 5 lines would be $175 a month. plus you can add a line anytime for $15 a month. sharing's never been better for business. ♪ sharing's never been better for business. phone: your account is already paid in full. oh, well in that case, back to vacation mode. ♪boots and pants and boots and pants♪ ♪and boots and pants and boots and pants♪ ♪and boots and pants... voice-enabled bill pay. just a tap away on the geico app. ♪ huh, 15 minutes could save you 15% or more on car insurance. yup, everybody knows that. well, did you know that some owls aren't that wise. don't forget about i'm having brunch with meagan tomorrow. who? seriously, you met her like three times. who? geico.

welcome back to "power lunch." check out shares of milan labs. revenue growth and strength in foreign dra nashg drug business offset decline in new products sales. the company stead is in a position to execute another substantial transaction again this year. a programming note. mylan's ceo will be live on closing bell at 4:00 p.m. eastern in cnbc. one you don't want to miss. >> absolutely. thanks. headlines. first solar upgraded to out pfrm neutral. increasing price. semiconductor down graded to sector perform from out perform at pacific crest. that firm citing the increased

price competition and management turnover, down almost 5%. verizon shares ticking higher by almost 3%. stock resumed at overweight at morgan stanley. price argument, $52. the major averages remain on pace for a positive week. the s&p hit a new high. giving you the top stock winners in the s&p when we come back on "power." [ tires screech ] [ car alarm chirps ] ♪ [ male announcer ] we don't just certify our pre-owned vehicles. we inspect, analyze, and recondition each one, until it's nothing short of a genuine certified pre-owned mercedes-benz for the next new owner. [ car alarm chirps ] hurry in to the mercedes-benz certified pre-owned sales event. visit today for exceptional offers. ♪

tdd#: 1-888-648-602121 tjust waiting to be found. ties tdd#: 1-888-648-6021 at schwab, we're here to help tdd#: 1-888-648-6021 bring what inspires you tdd#: 1-888-648-6021 out there... in here. tdd#: 1-888-648-6021 out there, tdd#: 1-888-648-6021 there are stocks on the move. tdd#: 1-888-648-6021 in here, streetsmart edge has tdd#: 1-888-648-6021 chart pattern recognition tdd#: 1-888-648-6021 which shows you which ones are bullish or bearish. tdd#: 1-888-648-6021 now, earn 300 commission-free online trades. tdd#: 1-888-648-6021 call 1-888-648-6021 tdd#: 1-888-648-6021 or go to schwab.com/trading to learn how. tdd#: 1-888-648-6021 our trading specialists can tdd#: 1-888-648-6021 help you set up your platform. tdd#: 1-888-648-6021 because when your tools look the way you want tdd#: 1-888-648-6021 and work the way you think, you can trade at your best. tdd#: 1-888-648-6021 get it all with no trade minimum. tdd#: 1-888-648-6021 and only $8.95 a trade. tdd#: 1-888-648-6021 open an account and earn 300 commission-free online trades. tdd#: 1-888-648-6021 call 1-888-648-6021 to learn more. tdd#: 1-888-648-6021 so you can take charge tdd#: 1-888-648-6021 of your trading.

we are the thinkers. the job jugglers. the up all-nighters. and the ones who turn ideas into action. we've made our passions our life's work. we strive for the moments where we can say, "i did it!" ♪ we are entrepreneurs who started it all... with a signature. legalzoom has helped start over 1 million businesses, turning dreamers into business owners. and we're here to help start yours.

getting you up to date on the markets. an interesting close. dow jones industrial average up 71 points with a gain of just under half a percent. s&p 500 number on a closing basis to watch, 1848.38, above that. up half a percent on the s&p. nasdaq at a 14-year high, up 29 points, biggest winner on the day in terms of the indices up 2/3%. sales force up 3.5 to 3 plus gain for coal and peabody energy up as well. ty, come home. can't have a snowbird as a co-anchor. come on back to the snow, baby! >> it is awfully nice to be able to walk around in a jacket, sit out at night. i'll end where we began. the overall tone of optimism here.

i mentioned 63% of ceos of these companies represented here are optimistic about their business and the case in the economy, the case for the economies right know globally. a big change from just a few months ago. >> sure is. >> and it is driven by janet yellen and the fed and interest rates staying low. sue? >> ty, see you soon. that's it for us. "street signs" begins, now. just what is apple waiting for? we're going into to try to figure 0 tut. when will apple finally wow us again? hi, everybody. i am brian. mandy drur around the big wall. >> hello, the big hello from the big wall. >> and so besides apple, also talking about this. what one retailer is doing that hasn't been done since lyndon johnson was president. are you thinking of investing in china? we have your buy dos and don'ts.